SYNOPSIS

TITLE OF THE PROJECT

“A STUDY OF WORKING CAPITAL MANAGEMENT OF WINGS BIOTECH”

INTRODUCTION & OBJECTIVE OF THE STUDY (Max. 200 words)

Introduction
The goal of working capital management is to ensure that the firm is able to continue its
operation and that it has sufficient cash flow to satisfy both maturing short term debt and
upcoming operational expenses. Raw material, work in progress, finished goods, inventories,
labour charges, wages, salaries, sundry debtors, and day to day cash requirements. The
Wings biotech keeps certain funds which is automatically available to finance the current
assets requirements. The various information regarding “Working Capital Management” such
as classification, determinants, sources will be discussed relating to Wings biotech.

Objectives
1. To understanding the concept and importance of working capital management.
2. To understanding various steps of operating cycle so which are involved in working
capital management?
3. To understanding the meaning of two terms i.e. gross working capital and net
working capital.
4. To know the two types of working capital i.e. permanent working capital and
temporary working capital.
5. To know the short term fund management and liquidity. Apart from that objective of
working capital management is achieving a trade-off between liquidity and
profitability of operations for the smooth conduct of normal business operations of
the firm. This has to be done while taking into view the attitude of management
towards risk and other constraints imposed by the suppliers of finance. It’s very clear
that objective plays the role for any organization. Thus working capital is lifeline of
any business.

STATEMENT OF THE PROBLEM (Max. 500 words)

Problem Statement
So far problem statement is concerned for working capital management, there are lots of
preambles or factors are faced these are following:
 Nature of business industry, size of business and growth prospects.
 Business/manufacturing cycle manage the cash for next year.
 Nature of finished goods. Profit margin and profit appropriation policies on
depreciation. Taxation and dividends and government policies.

AS we were seen as a liability towards the organization since there was no contribution from
our side towards, nobody actually paid any attention towards Working Capital. It was very
difficult to actually take out relevant information from the Comparative Study with Axis
Bank were very hesitant to let us meet the company. If cash flows are predictable it is simply

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a problem of minimizing the total costs - the transaction cost and the opportunity cost.
Transaction costs against the cost of too much cash (opportunity cash) Cash flows, in
practice, are not completely predictable. At times they may be completely random. Under
such a situation, a different model based on the technique of control theory is needed to solve
the problem of appropriate level of working cash balance. A fire in a factory may burn
everything and owner’s only source of earning with investment of huge capital is finished but
insurance will come to one’s rescue if insurance is taken, all the operations can be started
again.
The important of working capital management stems from two reasons
(i) A substantial portion of the investment is invested in current assets, and
(ii) Level of current assets will change quickly with the variation in sales.

Hence, in this study, an attempt has been made to analyze the size and composition of
working capital and whether such an investment has increased or declined over a period.
After determining the requirement of current assets, one of the important tasks of the
financial manager is to select a group of appropriate source of finance for the current assets.

Literature Review
The corporate finance literature has traditionally focused on the study of long-term financial
decisions. However, short-term assets and liabilities are important components of total assets
and needs to be carefully analyzed. Management of these short-term assets and liabilities
warrants a careful investigation since the working capital management plays an important
role for the firm’s profitability and risk as well as its value (Smith 1980).

A research study on working capital management of paper industries in India was conducted
by R. Sivarama and Prasad (2001). Their Sample consisted of 21 selected paper mills,
including 9 large, 5 medium and 7 small scales for the period from 1983-84 to 1992-93. They
reported that the chief executives properly recognized the role of efficient use of working
capital in liquidity and profitability, but in practice they could not achieve it. Again they
reported a clear reveal of a suboptimum utilization of working capital in paper industry.

RESEARCH METHODOLOGY (Max. 500 words)

Research methodology is a way to systematically solve the research problem. It May be
understood as a science of studying now research is done systematically. In that various
steps, those are generally adopted by a researcher in studying his problem along with the
logic behind them. “The procedures by which researcher goes about their work of describing,
explaining and predicting phenomenon are called methodology”

1. TYPE OF RESEARCH:
This project “A Study on Working Capital Management of Wings Biotech” is considered
as an analytical and descriptive research. Analytical Research is defined as the research in
which, researcher has to use facts or information already available, and analyze these to make
a critical evaluation of the facts, figures, data or material. Regarding the theoretical concept it
is descriptive since it interprets and analysis the secondary data in order to arrive at
appropriate conclusion, it is also analytical in character. The interpretation of data is done

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base on ration and percentage. We used the software Tally ERP9 to comparison the working
capital elements.

2. RESEARCH DESIGN:
The research design in this study will be both ‘Descriptive’ and ‘analytical’.

3. SOURCE OF RESEARCH DATA:

There are mainly two sources of data collection:

 PRIMARY DATA: The primary data is that data which is collected fresh or first
hand, and for first time which is original in nature. In this study the Primary data will
be collected from Questionnaire and Personal Interaction with Finance manager and
other staff members.

 SECONDARY DATA: The secondary data are those which have already collected
and stored. Secondary data easily get those secondary data from records, annual
reports of the company etc. It will save the time, money and efforts to collect the data.
The major source of data for this project will be collected through annual reports;
profit and loss account of 5 year period from 2012-2016 & some more information
will be collected from internet, journals and text books.

4. SAMPLING DESIGN
Sampling unit : Financial Statements
Sampling Size : Last five years financial statements

5. TOOLS USED FOR ANALYSIS OF DATA

The data will be analyzed using the following financial tools. They are
 Trend analysis
 Ratio analysis.
 Operating cycle analysis
 Working capital leverage Analysis
 Schedule of changes in working capital.

6. DATA ANALYSIS & INTERPRETATION

Classification & tabulation transforms the raw data collected through questionnaire in to
useful information by organizing and compiling the bits of data contained in each
questionnaire i.e., observation and responses are converted in to understandable and orderly
statistics are used to organize and analyze the data.
• Simple tabulation of data using tally marks.

LIMITATIONS
 The time constraint may be one of the major problems.
 The lack of information sources for the analysis part.
 Some respondents may be re-contacted as per their convenience of time.
 Some data given by the staffs may be not proper. Like their contact number & address,
etc.

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 The findings of the study are based on the information retrieved by the selected unit.
 Financial accounting does not take into account the price level changes.

REFERENCES

BOOKS
 Financial management - Khan and Jain, Tata Mcgrw Hill
 Financial management - Prasanna Chandra, Tata Mcgrw Hill
 Management accounting - R.K. Sharma and K. Gupta
 Financial Management and polices-V.K.Bhalla, ANMOL Publication Pvt. Ltd.
 Financial Management - K. Rajeswari, Sultan chand & sons

ANNUAL REPORTS & NEW PAPERS

 Annual Report of Wings Biotech
 Catalogues & Boucher Wings Biotech
 Times of India
 Economic Times
 The Hindu, etc.

WEB SITE VISITED

 www.weekipedia.com
 www.wingsbiotech.com
 www.google.co.in
 www.wikipedia.org
 www.transtutors.com, etc.

MAGAZINES
 Business world
 Business today, etc.